The Asian Development Bank (ADB) and Tata Power Delhi Distribution Ltd (TPDDL), the distribution division of The Tata Power Company Limited (Tata Power), have partnered to improve Delhi's power distribution.
As part of the deal, Asian Development Bank will subscribe to non-convertible debentures worth Rs1.5 billion, equivalent to USD 18.2 million. The funds will reportedly be utilized for grid enhancements.
"Power distribution is a critical and occasionally most susceptible element in the supply chain for power. Improved integration of renewable energy sources and a more disaster-resistant electricity distribution system for Delhi will result from integrating a battery energy storage system at the distribution transformer level. As Asia's Climate Bank, ADB helps India achieve its climate goals by utilising cutting-edge technologies and encouraging private investment in environmentally friendly projects "said Suzanne Gaboury, director general for private sector operations at ADB.
A USD 2 million grant from ADB will also be given to TPDDL to help with the partial financing of the acquisition and integration of a pilot Battery Energy Storage System (BESS).
A robust grid and a future-proof power distribution network are both made possible by the battery energy storage system. We appreciate ADB managing this grant to connect the experimental BESS to the TPDDL network. This will enable us to ensure that consumers receive a high-quality power supply and assist in incorporating sustainable energy into the mix of the power supply, "said Tata Power CEO and Managing Director Praveer Sinha.
The 66/11-kilovolt grid, as well as the extension and improvement of transformers, substations, feeder lines, and switching stations, will all be funded with the revenues from the senior secured financing.
Also, it will be applied to the installation of smart metres and the replacement of old electrical devices and metres.
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